Adopt fiscal responsibility legislation for growth, FRC tells states

Fiscal Responsibility Commission (FRC), yesterday, called on states to enact fiscal responsibility legislation and establish dedicated agencies to enhance fiscal management.

According to the commission, a transparent and efficient public procurement process, coupled with robust fiscal responsibility, are essential pillars for achieving sustainable economic growth.

Executive Chairman of FRC, Mr Victor Muruako, made the call in Abuja while receiving members of the Bauchi State Public Procurement Bureau, who were at the commission on a study visit.

He noted that the study visit would ensure effective and transparent fiscal operations across the country, benefiting Nigerian citizens by promoting accountability and prudent resource management.

Muruako, who was representated by the Director of Administration and Human Resource in the commission, Muhammed Zailani, highlighted the importance of the measures for promoting accountability and prudent resource management.

He noted that while debts, borrowing, and deficit management fell under the Federal Government’s exclusive legislative powers, the Fiscal Responsibility Act could be adopted by states if they chose to enact and domesticate it as state law.

He said: “The Fiscal Responsibility Commission was set up pursuant to the Fiscal Responsibility Act, 2007 to, among others, provide for prudent management of the nation’s resources, ensure long term macro-economic stability of the national economy, secure greater accountability and transparency in fiscal operations within a medium-term fiscal policy framework.

“The vision is to create an enduring framework for effective and transparent financial management in Nigeria in line with the renewed hope agenda of the Federal Government and to reform the management of Nigeria’s public finances through regular monitoring of government financial activities, uncompromising investigation and public reporting, backed by a firm commitment to enforcement.

“This defines the core activities of the commission of ensuring value for money in all government transactions through monitoring of projects, debts and indebtedness, borrowing and management of Government assets.”

In his remarks, Head of the Legal and Compliance Department of Public Procurement in Bauchi State, Dayyabu Ayuba, called for the immediate establishment of the Fiscal Responsibility Agency in the state, saying: “There is a Bureau for Public Procurement in the state, governed by a law, but the Fiscal Responsibility Agency, although legislated for, has yet to be established.

“Currently, the Bureau for Public Procurement is the only functional body. We have come to realise that the responsibilities of the two agencies are distinct and cannot be performed by one entity.”